Finding Financial Aid For Your Online Education
The cost of attaining higher education can seem daunting. Fortunately, there is a multitude of tools available that exist to bring advanced degrees within the reach of people who don't have a pirate's chest full of gold buried in their backyard. By working with a school's financial aid department, and examining their own fiscal situation, oftentimes people discover that an education that once seemed economically unfeasible is not as impossible as they first imagined.
Types of Financial Aid
Financial aid typically falls into one of two categories, public (supplied by the government) or private, and involves one of two aid types, loans or grants.
- Loans are typically taken out at the beginning of each school year and need to be repaid upon graduation, while grants are simply gifts that can be applied toward tuition. Depending on the loan agency and type of loan, they may or may not accumulate interest while the student is enrolled in school.
- Grants are typically awarded by schools based on demonstrated academic performance. Many online universities simply offer a grant (or scholarship) upon acceptance to the school if the student has a high probability of excelling in his or her courses. Additionally, there are countless private organizations that offer grants in amounts that range from $100 to full tuition.
A significant number of private grants are based on specific characteristics, such as ethnicity, desired career track, financial need, and family situation. Finding these scholarships can require some digging, because many smaller organizations offer such scholarships but do not advertise them.
If a student belongs to a fraternal organization, works a steady job, was in the military, is a member of a community service organization, is African American, Hispanic, Native American, Asian, Christian, Buddhist, Jewish, Muslim, left-handed, or has any other defining traits, chances are good he or she will find a private scholarship.
Where to Find Funding
One of the most comprehensive databases available for private grants is FastWeb.com. FastWeb is a scholarship search service that is free to students. The user simply inputs his or her information and FastWeb finds private grants to match the specific characteristics of the user.
Finaid.org is another extremely useful tool for finding scholarships and exploring other aid options.
The most popular program administered by the federal government is the Stafford Loan, which comes in both subsidized and unsubsidized varieties. With a subsidized Stafford Loan, the federal government picks up the tab on the interest until the student graduates, while the unsubsidized variant accrues interest while the student is in school. This loan is need-based, so while most people will be eligible for some combination of both subsidized and unsubsidized loans, it may not cover the entire cost of tuition.
The federal student aid website is an excellent resource for exploring these options. In order to apply for federal financial aid, a student must fill out a “Free Application for Federal Student Aid”, commonly referred to as the FAFSA. The FAFSA takes into account the student's financial situation in order to determine his or her need. Because of this, the student must fill out a new FAFSA every year.
Accreditation and Financial Aid
If you're planning on attending an online university with funding from the federal government, it's crucial that you make sure your online university is accredited. Currently, students attending non-accredited online institutions cannot receive any federal aid whatsoever; the online school must be accredited in order for the student to be eligible for federal aid.
In order for students to determine if an online college is accredited, the government maintains a database of all schools that have received accreditation by an acceptable agency.
Education can be expensive, and for many it may seem unattainable. However, with a bit of work and perseverance, it is possible for nearly any student in any financial situation to find a combination of private and federal aid that will bring a degree within reach.